Blue Ocean strategy is a consistent pattern of strategic thinking behind the creation of new markets and industries where demand is created rather than fought for and the rule of competition is irrelevant. This paper proposes a methodology to implement the Blue Ocean Strategy in a privately owned Malaysia industrial firm struggling in a very competitive market using different tools and techniques such as value curves, strategy canvas, six path method, four actions framework. The results of the paper were built on the bases of customer’s preferences, opinions, and suggestions that have been collected. The main result shows that the company managed to identify a number of new products that can develop its own new markets for it (Blue …show more content…
Here, the strategic culls for firms are to pursue either differentiation or low cost. In the Reconstructionist world, however, the strategic aim is to engender incipient best-practice rules by breaking the subsisting value-cost trade-off and thereby engendering blue ocean. Align the whole system of a firm's activities in pursuit of differentiation and low cost. Align the whole system of a firm's activities with its strategic cull of differentiation or low cost. Break the value-cost trade-off. Make the value-cost trade-off. Engender and capture incipient demand. Exploit subsisting demand. Make the competition impertinent. Beat the competition. Engender uncontested market space. Compete in subsisting market space.
Table 1: The Difference Between The Red Ocean Strategy And Blue Ocean Strategy.
Source: “Red Ocean versus Blue Ocean”, (Kim and Mauborgne, 2005) RED OCEAN STRATEGY BLUE OCEAN STRATEGY
Focus on current customers focus on noncustomers
Compete in existing market space Create uncontested market space
Beat the competition Make the competition irrelevant
Exploit existing demand Create and capture new demand
Make the value-cost trade-off Break the value cost tradeoff
Align the organization with differentiation Or low cost Ligning the organization with differentiation And low …show more content…
It captures the current state of play in the known market space. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what customers receive from the existing competitive offerings on the market. The “as is” strategy canvas depicts where a company stands today in the known market space. The strategy canvas which we will now see is both a diagnostic and an action framework for building Timur Precision Bhd blue ocean strategy. It allows two main purposes: to understand where the competition is investing and also what the consumer perception is of these offerings. The vertical axis depicts the value derived from each of the factors the industry competes in (horizontal axis). Timur Precision Bhd understanding of the new business environment lead to its creation of new value, not previously offered by the industry. It included:
• Processor and Graphics Quality – We are currently coorperate with NASA in order to create a lens which could have high power in processing image as Hubble.
• Customer Customization – Allowing the customer to customize the product with their own preferable online before they purchase